service tax on sub contractor

[Guest]

wts the taxability in case of sub contractor if the main contractor is engaged in the work of railways, is it exempt or its taxable ,

any new amendments is there

please guide

Manoj saparia

[ajay singh]

Please refer the article for any clarification on this link https://www.taxtmi.com/article/detailed?id=28

[YAGAY andSUN]

Sub contractor is not exemtped from the liability of service tax.

[CA Rachit Agarwal]

If the work is related to the Infrastructure development then the Service Tax will not be applicable.

[KASTURI SETHI]

UPDATION

In terms of Notification No.25/12-ST dated 20.6.12 (effective from 1.7.12) (S.No.29(h) as amended vide Notification No.6/15-ST dated 1.3.15 reads as under:

"sub-contractor providing services by way of works contract to another contractor providing works contract service which are exempt." After 1.7.12, if services provided by the (main) contractor are exempt, the services of sub-contractor are also exempt.

AI Summary

Clarification on Service Tax: Subcontractors in Railway Projects Exempt if Main Contractor's Services Are Exempt, per 2012 Notification. A query was raised regarding the taxability of service tax for subcontractors working under a main contractor engaged in railway projects. Four responses were provided. One respondent noted that subcontractors are not exempt from service tax liability. Another mentioned that if the work pertains to infrastructure development, service tax does not apply. An update highlighted that, as per a notification effective from July 1, 2012, if the main contractor's services are exempt, the subcontractor's services are also exempt. The discussion focused on clarifying the applicability of service tax in this context.